1 How Innovative Brands Are Succeeding with OTT Trace Galloway VP, Solutions Engineering, Vindicia
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How Innovative Brands Are Succeeding with OTT
Trace Galloway VP, Solutions Engineering, Vindicia
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Agenda: The OTT Global WaveOTT Monetization ModelsMaximizing Revenue and Lifetime Value Three Critical Steps to OTT SuccessOffer Personalization Is Key The Concept of “Frictionlessness” Data-driven DecisionsWhat Are Innovative Brands Doing?
How Innovative Brands Are Succeeding with OTT
Trace Galloway VP, Solutions Engineering
Vindicia
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Worldwide disruptive wave
Anywhere, anytime, any screen
Global leaders disrupting the market
$20+ billion next year
Transforming the landscape for: MVPDs Content owners and publishers Broadcasters and networks
Riding the Global OTT Wave
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Today 1.6 billion people worldwide actively watch online video on a variety of devices Represents over 20% of the
planet’s population
An estimated 900 million access TV programming and movies online today Will swell to over 1.3 billion video
viewers by 2019
OTT Global Growth
Source: Parks Associates
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OTT Service Provider Checklist
Compelling content licensed and available
Network/application infrastructure
User experience/flows
Monetization strategy to maximize revenue
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OTT as a feature
Advertising-supported OTT
Pay-per-view OTT
OTT subscriptions / recurring revenue
Hybrid OTT models
OTT Monetization Models
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OTT as a Feature “TV Everywhere” brings
OTT to subscribers at no additional charge
Turns OTT into a feature of MVPD distribution model, but fails to monetize OTT delivery
May stem flow of departing customers, but a feature is not a product
Not a long-term solution
Selecting the Right OTT Monetization Model
Ad-supported OTTOTT available without sign-in
or credentials
Ads are notoriously slow to load and play, and offer a poor user experience
May work for occasional users, but may drive away consumers who want more
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Pay-per-View OTT
Charge for each unit consumed
Effective when content is based on special events, such as sports or concerts
Makes high customer acquisition costs inevitable
Selecting the Right OTT Monetization Model
OTT Subscriptions and Recurring Revenue
Successful OTT players such as Netflix, Hulu Plus, Amazon, DIRECTV, Vimeo, Foxtel Presto, Telstra, and Media Prima
Consumers willing to try subscription and other recurring revenue-based delivery models
Hybrid OTT Monetization Models
Subscription video on demand (SVOD)
Credit-based consumption
Freemium subscriptions with ads for nonpaying users
Other hybrid models
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Predictable revenue streams
Less upfront commitment for consumers
Price and promotion flexibility
Long-term relationships
Control over user experience
Benefits of Subscription and Recurring Revenue Models
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Maximizing Revenue and Lifetime Value
ACLV = ((Avg. Mo. Revenue – Avg. Mo. Costs) x Average Customer Lifetime) – Acquisition Cost
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Three Critical Steps to OTT Success
1. ACQUIRE 3. EXPAND2. RETAIN
Billing, packaging, price, promotion, bundling, couponing and offer management all have dramatic but different effects throughout the customer lifecycle
Convert More Sales Expand User RevenueReduce Customer Churn
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Simplifying the GUI Reducing clicks to buy Third-party pages Mobile apps
Payment methods – not just more, but the right ones Offline payments Mobile payments
Resale/wholesale models Service providers (mobile, broadband, video)
Promotions/coupons Stacking
Loyalty Virtual currency and credits
Acquiring OTT Subscribers
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Geographic, demographic, sociographic
Hybrid models – SVOD, TVOD, freemium
Price, offer, payment flexibility
Social interaction, gamification and loyalty programs
Real-time scale and security
Integration of linear and OTT bundles
Offer Personalization Is Key
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Remove barriers between OTT service and consumer
Simplify sign-up, purchase experience
Easy in / easy out
No commitments
Trust the product/service
Frictionlessness
Reducing the Barriers to Service Adoption
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Data-driven DecisionsBusiness Insight and Intelligence
Key metrics and business operationsConsumer behavior
Views / plays / replays
QOS
Subscriber worthiness
Content profitability
Cohort analysis
Retention
Active vs. passive churn
Socioeconomic data
Acquisition cost analysis
Chargebacks
Churn management
Peer rankings
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Prepare to Iterate to Drive Market Acceptance
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What Are Innovative Brands Doing?
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2020
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OTT monetization models vary dramatically by demographics and sociographics
Core tenets of successful monetization Customer lifecycle:
Acquire, Retain, Expand Frictionless commerce Offer personalization drives
acquisition and retention
Nothing is sacred Data-driven decisions Iteration is critical to success
Key Takeaways
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What are you doing to capitalize on OTT and the
subscription-based economy?
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Questions?Thank You
www.vindica.com
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